Benchmark Study - Summary: Setting a children's rights benchmark for the corporate sector

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Setting a Children's Rights Benchmark for the Corporate Sector

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SETTING A BENCHMARK:

Children's rights and the corporate sector What

Purpose

• Global Child Forum and The Boston Consulting Group have co-developed a benchmark measuring how companies address children's rights in public reporting • Measured across countries and industries in the world's largest publicly listed companies • Objective, scalable and replicable

• Set a baseline and track progress over time across geographies and industries • Identify leading examples that can act as inspiration for other businesses and spur action • Establish the benchmark as a generally recognized index in children's rights

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The children's rights benchmark evaluates 9 indicators Indicators Child labor policy Addressing beyond child labor Performance reporting Board accountability Materiality assessment Refer to international standards Collaborations with child org.

Driving strategic programs Charity The benchmark measures activity but not outcome

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CONDUCTED STUDIES SO FAR:

One global study and two regional studies 2014

2014

2015

Average score

Average score

Average score

3.4 / 9

0.9 / 9

2.4 / 9

Global Study

Middle East Northern Africa

1 040 companies from Forbes Global 2000.

353 companies from Forbes MENA 500.

Southern Africa 271 companies listed on Johannesburg Stock Exchange.

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Benchmark study key findings at a glance 62%

13%

1%

Have a child labor policy

Of boards are accountable for children’s rights issues

Refer to the Children's rights and Business Principles

Other child related issues are addressed by only 24%

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Limited actions related to core business operations Common with several smaller initiatives without a long-term strategy Companies perform higher on indicators not directly affecting their daily business operations

Companies score lower on indicators more closely related to their business and governance

62% 49%

49%

52%

29%

24%

23% 13%

Charity

Child labor policy

Further away

Driving own International Collaboration Other programs standards with NGOs issues than child labor

Closeness to operations

13%

Materiality Publish Board assessment performance accountability reporting results

Close

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Differences in addressing children's rights are large across geographies

Percentage of firms mentioning children's rights 90-100%

80-89%

70-79%

60-69%

50-59%

40-49%

30-39%

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All industries have leading examples to learn from Leading examples in each industry

Average industry score

(8/9 or 9/9 p)

Consumer goods

4.3

Food & beverage

4.2

ICT

4.1

Basic materials

3.3

Healthcare

3.2

Travel & leisure

2.8

Industrial goods

2.8

Oil & Gas

1.9 0

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2

3

4

5

6

7

8

9

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Next steps for the children's rights benchmark Expanding the lenses

• Continue regional deep-dives • Expand corporate ownership lens • Broaden sample to small/mediumsized firms

Ensuring continuity and effectiveness

• Benchmark 2014 is a baseline measure progress every 3d year • Ensure local ownership of benchmark on regional levels

Establishing a generally recognized index

• Establish the benchmark as a reference point in children's rights • Continue to share data with ethical investment funds to increase awareness

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